Nigeria Customs Service to introduce 4% Free On Board (FOB) levy at the port.
The Nigeria Customs Service (NCS) has announced it will replace the current 7 percent collection fee from the federation account and the 1 percent Comprehensive Import Supervision Scheme (CISS) fee with a new 4 percent Free On Board (FOB) levy at the port.
The CISS is a pre-shipment inspection fee, while the new 4 percent FOB is a charge based on the value of imported goods, including transportation costs up to the port of loading.
Comptroller General Adewale Adeniyi made the announcement during a town hall meeting with stakeholders in Lagos to discuss the B’Odogwu clearance system. The high-level meeting in Ikeja included importers, freight forwarders, shipping lines, terminal operators, banks, and other key stakeholders, and focused on reforms to improve trade compliance, clearance efficiency, and technological advancement in customs operations.
The NCS had initially announced the 4 percent FOB levy on February 4, but later suspended the implementation to allow for broader stakeholder consultations.
According to Adeniyi, the new 4 percent FOB levy will fully replace both the 1 percent CISS and the 7 percent collection from the federation account.
“There would be no extra charges after the 4 percent FOB as this would replace the 1 percent CISS and the 7 percent they are collecting from the federation account,” he told stakeholders.
Adeniyi emphasized that the reintroduction of the levy is necessary to fund the service’s modernization drive and technological advancements, particularly the development and deployment of the Unified Customs Management System (UCMS), popularly known as B’Odogwu.
“The Unified Customs Management System (UCMS), popularly known as B’Odogwu, is a fully digital platform designed to streamline customs operations, eliminate bottlenecks, and promote transparency in Nigeria’s import and export systems,” Adeniyi said.
He noted that the transition from the NICIS II platform to the new indigenous system requires significant financial investment to meet international standards.
“We have no choice in the payment of the 4 percent FOB because it is needed by the Customs to fund the huge technology and modernisation programme it has embarked upon,” he said.
“When we introduced this levy some months ago, we were asked to hold on and consult with our stakeholders. I am now telling you that we have no choice but to introduce the levy because technology does not come cheap and in a Yoruba parlance ‘the soup that is sweet is as a result of money.’”
Adeniyi also underscored the importance of Nigeria’s position on the global customs stage. As chairman of the World Customs Organization (WCO) council, he said Nigeria must leverage the role to promote its indigenous innovations.
Now it is going to be B’Odogwu to the world,” the comptroller-general said. “Now that we have the WCO Council Chairmanship with us, let us use the opportunity to sell B’Odogwu to the world and tell them that we have the capacity and competence to develop our technology to enhance our operations and facilitate trade.”
While stakeholders welcomed the move to simplify charges, some raised concerns about delays in system transitions, especially in relation to bank processing and documentation.
